On the 16th morning, KEPCO E&C shares are up more than 13%. It appears to be due to broker analysis that this year's earnings will rebound sharply on the back of high growth in the nuclear power business.
As of 9:33 a.m. that day, KEPCO E&C on the Korea Exchange is at 128,500 won, up 15,100 won (13.32%) from the previous trading day. It jumped as high as 128,900 won intraday, setting a new 1-year high.
Seong Jong-hwa of LS Securities said, "This year, a dramatic sharp rebound in earnings is expected as progress rates for major design projects that began recovering from the third quarter (July–September) last year improve and preliminary design revenue for Dukovany Units 5 and 6 is partially reflected," raising the target price to 150,000 won from 130,000 won.
Seong also assessed that nuclear power at home and abroad has medium- to long-term high-growth potential. In particular, the view is that there is a high possibility of new nuclear orders in Europe and the Middle East.
Seong added, "Czech Temelin Units 1 and 2, UAE BNPP Units 5 and 6, Saudi Arabia Duwaihin Units 1 and 2, and Poland Pontnuf Phase 2 Units 2–4 are all projects with a high possibility of Team Korea orders in the medium to long term," adding, "There have also been media reports recently suggesting the possibility of relaunching two large domestic units."